Ultrapetrol reports new contracts

Ultrapetrol (Bahamas) Limited reports that it has entered into contracts with a new customer, a first class international company, to transport 400,000 tons of iron ore per year over a period of four years starting in January 2012. In addition, the company has agreed to sell this customer twelve 2,500 ton newbuilding jumbo barges to be delivered before the end of 2011.

As part of the agreement, Ultrapetrol will provide transportation of an additional 150,000 tons of iron ore, corresponding to the capacity of the barges that are being sold, for one year with the option for a second, which will be operated by the company in the initial period.

Ultrapetrol also announced that its new platform supply vessel delivery, the UP Jasper, has arrived in the North Sea and is now operating under a long-term time charter at GBP 15,500 per day. Ultrapetrol now has eight PSVs in its fleet that are all operating on long-term time charters and four newbuildings, which are scheduled for delivery in 2011 and through 2012.

Felipe Menendez, President and Chief Executive Office, said: "We are pleased that our investments over the past four years are beginning to yield significant results. In particular, our River Business has benefited from our ability to add much needed capacity through our automated barge building facility to respond to growing demand on the Hidrovia river system. Additionally, the UP Jasper, the eighth PSV in our fleet that we took delivery of in June, is now operating on a long-term time charter in the North Sea where rates remain strong."

Ultrapetrol is an industrial transportation company serving the marine transportation needs of its clients in the markets on which it focuses.

Its River Business, currently with 621 barges, is the largest owner and operator of river barges and pushboats that transport dry bulk and liquid cargos through the Hidrovia Region of South America, and also includes a shipyard on the River Plate in Argentina.

Its Offshore Supply Business operates primarily in the North Sea and the coastal waters of Brazil.

Its Ocean Business operates eight oceangoing vessels, including four product tankers, employed in the South American coastal trade, one container vessel, one 43,000 dwt petroleum product tank barge, and one oceangoing pushboat. Ultrapetrol additionally operates two containership vessels operating in a flag-restricted trade in South America.